MicroStrategy Buys More Bitcoin, Spends $6 Million For 301 Tokens

Software company MicroStrategy, founded by bitcoin supporter Michael Saylor, is still purchasing the world's biggest cryptocurrency.

According to a filing with the Securities and Exchange Commission (SEC), the company acquired the 301 BTC at an average price of $19,851 between Aug. 2 and Sept. 19 and spent around $6 million on its purchase.

MicroStrategy now owns 130,000 bitcoins as of Sept. 20 and the average purchase price is $30,623 per bitcoin with a total cost of $3.981 billion, according to BuyBitcoinWorldWide. The company is considered the largest corporate holder of bitcoin.

The price of 1 BTC as of 9.58 p.m. ET Tuesday was $18,896, lower than the average purchase price of MicroStrategy, data from CoinMarketCap showed. Based on the current price, the software company's total holdings amount to $2.45 billion, marking a loss of more than $1.5 billion.

Euro Pacific Capital CEO and chief global strategist Peter Schiff, who is one of the biggest critics of bitcoin and MicroStrategy's BTC adoption standard, criticized the company's recent purchase.

"Basically your company has already lost about $1.5 billion (40%) on your Bitcoin gamble. However, if you actually tried to sell, Bitcoin would crash, sending realized losses much higher. MSTR's foray into Bitcoin has been a disaster. Shareholders should sell while they can," Schiff said.

In a previous Twitter post, Saylor, who is now the chief executive of MicroStrategy, pointed out that the company's stock (MSTR) outperformed all major tech firm stocks after it started its bitcoin purchase.

While Schiff acknowledged the surge in the price of MSTR since its adoption of bitcoin, he pointed out that "shareholders should sell now. MSTR is in a massive bubble. Not only will the share price crash, but the company may even go bankrupt."